No, extras cover doesn’t affect your eligibility for the LHC loading. If you want to avoid the loading, you’ll need either a standalone hospital cover policy or a combined hospital and extras policy. While it won’t help you avoid the loading, there are many other benefits to having extras included in your policy.
Extras cover benefits include:
And much more. Depending on your level of cover, you’ll be able to access many services (most of which aren’t subsidised by Medicare) that you can use to maintain your health and keep you out of the hospital.
Along with the LHC loading, there are some other factors that will affect your health insurance premiums; namely, the Australian Government’s private health insurance rebate. This rebate is similar to the LHC loading in that it’s designed to incentivise Australians to take out private health insurance.
However, unlike the LHC, the rebate applies to hospital, extras and ambulance cover policies. You can claim this rebate as a reduction of your premiums or a tax offset when you lodge your annual tax return. The rebate is a percentage of your base insurance premium and doesn’t apply to the LHC loading.
The rebate amounts available until 30 June 2023 are:1
|Singles||< $93,000||$93,001-108,000||$108,001-144,000||> $144,001|
|Families||< $186,000||$186,001-216,000||$216,001-288,000||> $288,001|
|Base Tier||Tier 1||Tier 2||Tier 3|
|< age 65||24.608%||16.405%||8.202%||0%|
For single parents and families with children, the income thresholds are increased by $1,500 for each child after the first.
If you have a family policy, your LHC loading will be averaged between you and your partner. For example, if you’re 40 with an LHC loading of 20% and your partner is 50 with an LHC loading of 40%, your total LHC on your family policy will be 30%.
1 Privatehealth.gov.au, Australian Government Private Health Insurance, Accessed August 2022.